Smart Leasing Program

Pledge to try to recognize, implement, and encourage smart leasing principles in your industry and get expert knowledge support from the Smart Leasing team.

Tenants leasing energy-efficient space has been proven to improve employee productivity, retention, and sales due to improved thermal comfort, natural daylight, and residing in a healthy building. By integrating smart leasing into your business practices, you can unlock the value of leasing cost-efficient space that reduces utility costs, drives employee satisfaction, and benefits your bottom line.  According to a study done by Stok, commercial tenants who invest in high-performance buildings can gain an additional annual value of $3,395 per employee and $18.56 per square foot due to the enhanced productivity, retention, health, and utility and maintenance savings. Refer to the Why Smart Leasing one-pager for an enlarged view of the infographic below. 

Text version of the infographic

For example, as a tenant seeking efficient space, it is important to set efficiency standards for site selection and built out of leased spaces and communicating your criteria with all real estate parties involved in this process ensures all are working towards the same efficiency goals.

Smart leasing practices for tenants:

1. Work with your broker to create site selection criteria that prioritize efficiency and meet your needs.
2. Ask prospective landlords what the ENERGY STAR® score of the building is and what energy-efficient features are installed.
3. Submeter energy use in your leased space to the extent possible and ask that the landlord provide monthly updates on energy consumption.
4. Build out your space utilizing energy-efficient strategies such as natural lighting, ENERGY STAR appliances, occupancy sensors, and programmable thermostats.

Download this Tenant Smart Leasing one-pager to encourage others in your industry to participate in the program

Learn more:

• Tenant Good, Better, Best Guide
• A Better City: Green Leasing: An Effective Tenant/Landlord Strategy for Energy Efficiency
• Environmental Protection Agency’s ENERGY STAR:
  • Find Green Space
  • Engage Occupants
• Green Lease Leaders:
  • Reference Guide for Tenants
  • Lease Audit Tool – Tenants
• Institute of Market Transformation (IMT): Green Leasing Questionnaire for Tenants
• National Resources Defense Council - Selecting High-Performance Tenant Space: A Pre-Lease Guide
• Northeast Energy Efficiency Partnerships: A Guide for Renting and Creating Lower Cost Energy Efficient Apartments and Homes
• Site Selection Criteria
• Sustainable Build Out Guidelines
• Example Lease Clauses
• Smart Leasing Stakeholder Survey Results

Landlords and Property Managers involved with leasing energy-efficient space have proven to improve asset value through reduced operating costs and increase tenant retention. By integrating smart leasing into your business practices, you can unlock the value of leasing cost-efficient space that reduces utility costs, drives tenant satisfaction, and benefits your bottom line.

For example, as a landlord or property manager seeking efficient space, it is important to set efficiency standards in your lease that include clauses such as data sharing and submetering clauses lead to improved transparency between the landlord and tenant and help guide landlords in prioritizing tenant efficiency upgrades.

Smart leasing practices for landlords or property managers:

1. Promote the energy-efficient features of your property to the market, including the ENERGY STAR® score.
2. Set efficiency standards build-out of leased spaces and communicate your criteria and its benefits to prospective tenants.
3. Submeter your tenant spaces to increase transparency and provide data that can help target and pursue energy-efficiency improvements.
4. Implement, evaluate, and continuously improve energy management practices throughout building operations to establish consistency in achieving efficiency goals. 

Download this Landlord/Property Manager Smart Leasing one-pager to encourage others in your industry to participate in the program. 

Learn more:

• Department of Energy’s Better Buildings:
  • Build Out to Save Money – Large Office
  • Build Out to Save Money – Small Office
  • 10 Green Leasing Tips for Building Owners
• Environmental Protection Agency’s ENERGY STAR:
  • Find Green Space
  • Engage Occupants
• Webinar: Unlocking Hidden Value in Class B/C Office Buildings (PDF) (Recording)
• Green Lease Leaders: Reference Guide for Landlords
• Institute of Market Transformation (IMT): Why Landlords Should Take the Lead on Installing Submeter Technology
• BOMA Green Lease Guide
• Building Rules and Regulations for Sustainable Operations
• Example Lease Clauses
• Smart Leasing Stakeholder Survey Results
• Energy Efficiency Hacks to Implement During Building Vacancy
• How to Re-Open Your Building After COVID-19

Brokers that build expertise in smart leasing practices are uniquely positioned to grow their client base and assist their clients in capitalizing on leasing cost-efficient space that meets the growing demand for healthy, high performing buildings and aligns with clients’ sustainability goals.

For example, as a broker assisting a client in leasing efficient space is important to be able to articulate the business case for leasing high-performance buildings such as increased market value, higher return on investment, and lower utility costs. 

Smart leasing practices for brokers:

1. Attend training or other educational events and review resources to be able to articulate the value of energy efficiency to clients.
2. Share information and resources with tenants that explains how leasing energy-efficient space can improve employee productivity and retention while reducing utility costs.
3. Share information with landlords or property managers that explains how leasing energy-efficient space can improve market value through reduced operating expenses and increase tenant retention.
4. Align site selection processes with landlord and tenant sustainability goals and interests to overcome the split incentive.

Download this Broker Smart Leasing one-pager to encourage others in your industry to participate in the program. 

Learn more:

• Better Bricks:
  • Leverage Leasing Practices to Reduce Energy and Utility Costs
  • Selling Efficient Spaces: Brokers Bring Green into the Equation
• Institute of Market Transformation (IMT)
  • Deep Retrofit Value (DRV) Green Leasing Tool
  • The Business Case for High-Performance Buildings
• National Resource Defense Council (NRDC): Energy Efficiency Lease Guidance
• Penn Institute for Urban Research: Educating Commercial Real Estate Brokers on Green Leasing/Energy Efficiency
• Smart Leasing Stakeholder Survey Results

Attorneys that can integrate clients’ sustainability goals into leases can work more and stay current with the growing demand for healthy, high performing buildings. It is important to be proficient in green lease language such as cost recovery and information sharing clauses that can assist in aligning tenant and landlord sustainability goals to benefit both parties in reducing energy and saving money.

For example, as an attorney servicing a client that is leasing efficient space, it is important to be proficient in green lease language such as cost recovery and information sharing clauses that can assist in aligning tenant and landlords' sustainability goals to benefit both parties in reducing energy and saving money.

Smart leasing practices for attorneys:

1. Attend training or other educational events and review resources to be able to articulate the value of energy efficiency to clients.
2. Share information and resources with tenants that explains how integrating green lease language can improve employee productivity and retention while reducing utility costs.
3. Share information with landlords or property managers that explains how integrating green lease language can improve market value through reduced operating expenses and increase tenant retention.
4. Align lease language with landlord and tenant sustainability goals and interests to overcome the split incentive.

Download this Attorney Smart Leasing one-pager to encourage others in your industry to participate in the program. 

Learn more:

• A Better City (ABC) Green Leasing – An Effective Tenant/Landlord Strategy for Energy Efficiency (2014)
• Retail Industry Leaders Association (RILA) Retail Green Lease Primer
• Department of Energy’s Better Buildings Initiative Webinar: Leveraging the Commercial Lease to Automate Energy and Water Cost Savings in Tenant Spaces
• Example Lease Clauses for Landlords
• Example Lease Clauses for Tenants
• Smart Leasing Stakeholder Survey Results

Architects, designers, and space planners conversant in smart leasing site selection and build-out processes are sought out as credible advocates and can demonstrate additional value to their clients by presenting energy-efficient options that align with their sustainability goals and offer creative solutions to sustainability challenges. 

For example, as an architect, designer, or space planner servicing a client that is interested in efficient space it is important to consider energy performance when making build-out decisions to ensure your client's space is comfortable and affordable. According to a feasibility study done by the U.S Department of Energy, commercial tenants who invest in energy-efficient technologies can save between 10 to 20 percent or even more in energy expenses over the lifetime of their lease.

 Smart leasing practices for architects, designers, and space planners:

1. Share information and resources with tenants to explain how selecting energy and cost-efficient options can increase employee retention and reduce utility costs.
2. Share information and resources with landlords to explain how selecting energy and cost-efficient options can improve net operating income and increase tenant retention.
3. Align site selection and build-out processes with landlord and tenant sustainability goals and interests to overcome the split incentive.

Download this Architects, Designers, and Space planners Smart Leasing one-pager to encourage others in your industry to participate in the program.

Learn more:

• Department of Energy’s Better Buildings Initiative Building Envelope Technology Research Team
• Environmental Protection Agency’s ENERGY STAR: Buildout for Top Performance
• National Institute of Building Sciences (NIBS):
  • National Performance-Based Design
  • Whole Building Design Guide
• Urban Land Institute (ULI): Energy Value Analysis Guide: Design and Construction
• U.S. GSA: Office of Federal High-Performance Green Buildings
• Sustainable Build Out Guidelines
• Smart Leasing Stakeholder Survey Results

Resources:

• 'Why Smart Leasing' one-pager
• Denver Smart Leasing webinar and accompanying slideshow 
• Stakeholder Survey Results
• Department of Energy’s Better Buildings: Financial Performance of High-Performance buildings

Smart Leasing, LEED, & WELL:

• Comparison Chart
• Smart Leasing Best Practices that Enable LEED & WELL

Case Studies:

• Petroleum Building
• Denver Post Building
• Unico Properties Elephant Corral